A professional firm allows members advantages that floor traders recieve.

The drawbacks are no SIPC insurance. This means if the firm goes under your money is gone.

They require a Series 7 license to trade with them. This is due to being a professional. It's a way for the industry to help regulate professionals.

I'm going to cut and paste some threads about them here as it has already been said quite a few times by me before.

This thread of Professional margin rates of 10-1 is one that discusses this quite well.

Professionals aren't held under the normal margin rates that retail traders get. They can borrow up to 100 times their capital at times. Most firms won't allow that type of leverage but will allow 10-1 or 20-1.

I emailed all of the firms requesting info. I was in a serious hurry because my Series 7 was about to expire at the end of the month.

More...

rtharp:

I have a question about this. You say your Series 7 was about to expire. I think I read on Echo's website that they are a member of the SEC and the Pacific Exchange, but not the NASD. It is my understanding that to keep one's series 7 license from expiring, and not have to re-take the exam, you must be employed (have it registered) with an NASD member firm. I believe you have 2 years to move it from one firm to the next. Is Echo a member of the NASD? If not, maybe I have this all wrong. Thanks for any help.

I was just wondering if you could give me an HONEST assessment the charting capabilities of Echotrade's remote trading software (Echotrader), rtharp. Are there many common features available in that package? Indicators? Timeframes? Reliability and timeliness? Customizability? Thank you in advance!

I have a question about this. You say your Series 7 was about to expire. I think I read on Echo's website that they are a member of the SEC and the Pacific Exchange, but not the NASD. It is my understanding that to keep one's series 7 license from expiring, and not have to re-take the exam, you must be employed (have it registered) with an NASD member firm. I believe you have 2 years to move it from one firm to the next. Is Echo a member of the NASD? If not, maybe I have this all wrong. Thanks for any help.

(this was edited due to me doing some research)
THe Professional firms are not memebers of the NASD.
Echo is a member of the Pacific Exchange. Most all of the professional firms are members of regional exchanges as they are better equipped to handle the professional structure.

Traders don't have a problem going back to a NASD firm. THe NASD will not require you to retake the Series 7 if during the entire time you were gone from NASD you were with a professional firm working in professional capacity.

THE SEC regulates the professional firms more than retail firms.The booklet to open an account is about 150 pages and includes a fingerprint card.

08-17-2001 01:28 AM Edit â¢ Quote
Rushman
Junior Member

Registered: Apr 2001
Posts: 11 I was just wondering if you could give me an HONEST assessment the charting capabilities of Echotrade's remote trading software (Echotrader), rtharp. Are there many common features available in that package? Indicators? Timeframes? Reliability and timeliness? Customizability? Thank you in advance!

Actually the charting is ok. I have heard a lot of others say it is not the best there is but I don't rely on charts that heavily. I can get stochastics, volume, OBV, VAD, FLOW, $FLOW, MACD, RSI, ROC, Momentum, Bollinger Bands, Parabolic, Envelopes, Moving Averages,

I've got some questions about echotrade, which applies to other prop firms too.

If you don't put up any initial capital of your own, them I'm guessing your $0.01 per share charge starts accruing as a debit in your account. Is there a cutoff level in losses before the firm kicks you out? What about a preset time frame in which you must become profitable? I realize most of the advocates of echotrade and other prop firms on this board are reasonably successful traders, but what is the general retention rate among all traders at the firm?

So Echo is hiring prop traders with no capital contribution? Hmmm.....Where is the nearest office to Los Angeles? Would really like to hear about the about the formalized training/mentorship. For example:

What sort of method(s) is the rookie trader taught (momentum trading, position or swing trading, scalping, spreading)? How long does the training last?

Mentoring: Does the rookie work one on one with a mentor? How often do they meet? Is the mentor an active trader?

I was hoping you would email me with your email address. It looks like we may be on similar career paths as I am hoping to interview with all of the firms you did, as well as momentum and protrader.com as they are in my backyard, Texas. Would love to ask you about your interviews and general feeling about the firms you visited. Please email me if your open to it. Hope ya are.